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NFT appraisal is a grey area if it is anything like the art market, and yes it can be used to defraud. https://www.latimes.com/local/la-me-irs2mar02-story.html

• jerry1979 6y ago
  Thank you for posting this article. I had not come across this one in my limited research. >It is appraisers, not museums, who determine the value of art for donors. But the U.S. attorney’s office in Los Angeles is investigating whether museum officials furthered the scheme by knowingly accepting donations of overvalued art from suspect dealers and collectors over a decade, according to affidavits filed in January. Looks like software might eat this too. Anyway, I think I naturally tend to support the Liberal Project for better or worse, but today's streams of turbulence feel refreshing on tired feet.